Heating Newsletter. May 07. Topics

Transcription

1 Heating Newsletter May 07 International Market Strategy Topics Bulgaria FICOSOTA to Change its Name China Solar Water Heating System to Cover 160 Million Square Metres by 2010 China HAIER Got Rid of Loss in 06 Denmark DANFOSS Acquires Norwegian Heat Pump Manufacturer Denmark Danish SolarCAP Buys ARCON Solvarme Germany CONERGY Increases Heat Pump Production Capacity Italy MTS Group Opens Third Plant in China Romania VIESSMANN Sees Sales in Romania Up 20% in 2007 Spain First Conference on Energy Efficiency in the Building Sector Switzerland Swiss to Halve the Use of Heating Oil Turkey Turkish DEMIRDOKUM Opens Plant in Algeria USA LSB Industries, Inc. Reports Results for the 2007 First Quarter Monthly Special Europe Germany The Yellow Pages for 30 European Countries Soon Published The German Heating Products Market International strategic market research and consultancy on building product and related markets

2 Bulgaria: FICOSOTA to Change its Name BRG Consult Newsletter FICOSOTA, the Bulgarian manufacturer of heating products, has changed its name from FICOSOTA Ltd. to TESY Ltd. The change only concerns the name/title of the company and has no legal, financial or commercial implications. Source: Ficosota China: Solar Water Heating System to Cover 160 Million Square Metres by 2010 The coverage area of solar water heating systems in China will be extended to 160 million square metres in the 11th Five-Year Plan period ( ), announced an official in charge of the Ministry of Construction. At present, there are more than 60 million square metres of solar water heating system in use in China. Source: Xinhua Economic News China: HAIER Got Rid of Loss in 06 HAIER ELECTRONICS Group Co., Ltd., one of the leading electronic appliances manufacturer in China, moved out of loss in In the fiscal year 2006, HAIER realised CNY 262 million net profit and CNY of earnings per share. HAIER washing machines and electric water heaters snatched a 31.3% and 20.4% share respectively in their own markets last year. Source: SinoCast 2

3 Denmark: DANFOSS Acquires Norwegian Heat Pump Manufacturer Danish industrial group DANFOSS A/S said on April 30, 2007 it had signed an agreement to acquire Norwegian heat pumps company NORMANN ETEK AS. The purchase is the fourth acquisition of a heat pump company by DANFOSS in 18 months. The agreement is subject to approval by the relevant competition authorities and is expected to be finalised in the coming four weeks. NORMANN ETEK has been the Norwegian distributor of DANFOSS' heat pumps brand THERMIA, and will continue to be so after the acquisition. DANFOSS entered the heat pump market with the takeover of Swedish company THERMIA VARME AB 18 months ago. Since then, the business has expanded to include production facilities in Switzerland and France. NORMANN ETEK's development activities will be integrated into the DANFOSS competence centre for heat pumps in Arvika, western Sweden. In 2006 NORMANN ETEK had net sales of more than 50 million Norwegian crowns ($8.4 million/6.1 million euro). The company employs 13 people and will continue to operate from its headquarters in Oslo. Source: Danfoss Denmark: Danish SolarCAP Buys ARCON Solvarme Danish window and panels group VKR Holding A/S announced on April 12, 2007 that its solar heating systems subsidiary SolarCAP A/S had acquired Danish sector company ARCON Solvarme A/S. The transaction is part of VKR Holding's plan to expand on the international solar energy market. SolarCAP specialises in smaller solar heating systems in Europe, known under the SONNENKRAFT brand, whereas ARCON produces medium-sized and large systems. VKR Holding has established the SolarCAP group by takeovers of solar thermal companies in Europe, the USA and India in the last three years. Currently, SolarCAP employs more than 1,000 people. VKR Holding is known for its VELUX window brand. Source: Nordic Business Digest 3

4 Germany: CONERGY Increases Heat Pump Production Capacity CONERGY WAERMEPUMPEN GmbH, a subsidiary of German solar energy group CONERGY AG, has increased its heat pump production capacity with the opening of a new plant in Guestrow, in northern Germany, Conergy said in a statement on April 24, The total investment volume in the Guestrow-plant is standing at around euro 2.0 million ($2.7 million). As a result, the company has tripled its production space, creating the necessary premises for multiplying the annual production of heat pumps. On the basis of strong demand, CONERGY projects to increase heat pump production to around 70 MW in 2007 from around 30 MW in The market for heat pumps in Germany doubled in 2006, according to company data. In view of increasing prices for oil and natural gas, CONERGY expects a further massive growth in the coming years. Other countries, such as France, Belgium, Switzerland and the UK, have also recorded strong growth rates in heat pump production for the last few years. Source: German Business Digest Italy: MTS Group Opens Third Plant in China On April 16, 2007 Italian heating and cooling equipment producer MERLONI TERMOSANITARI (MTS Group) opened the company's third plant in Wuxi, in the eastern Chinese province of Jiangsu. The other two Chinese plants of the Italian producer, which are also located in Wuxi, cover areas of 35,000 sq m and 27,000 sq m. The MTS Group will manufacture solar systems, boilers and heating equipment in the newly opened plant, which also boasts an advanced research and development centre. The MTS Group has operated in China since In 2006 the turnover of the Italian company generated from the Chinese market went up by 30% and totalled some euro 110 million ($149.2 million), compared to euro 85 million ($115.3 million) in Currently, the MTS Group has some 1,500 employees and 20 offices in China. The company sells its ARISTON and ELCO brands in the Chinese market. Source: ANSA 4

5 Romania: VIESSMANN Sees Sales in Romania Up 20% in 2007 Heating system manufacturer VIESSMANN expects its sales in Romania to rise 20% in 2007, on the back of expected growth in the local construction sector this year, VIESSMANN Romania's marketing manager Valentin Nan said on April 23, Sales in Romania's northwestern region of Transylvania accounted for more than 50% of the company's total sales in the country last year. Wall heating systems topped the company's sales in Romania in 2006, with 14,000 units sold. VIESSMANN Romania expects the local sector market to rise 10% in terms of volume in 2007, from the 175,000 units sold in VIESSMANN Romania in Brasov, central Romania, runs a 200-dealership network in the country. The international VIESSMANN Group has 12 manufacturing plants globally and is present in 35 countries, where it employs 6,700. It closed 2006 with a turnover of euro 1.4 billion ($1.9 billion). Source: Balkans Business Digest Spain: First Conference on Energy Efficiency in the Building Sector On the 16th and 17th of May 2007, the First Conference on Energy Efficiency in the Building Sector will take place in Barcelona. This will occur at the same time as the Third Catalan Conference on Solar Energy, organised by ICAEN with the collaboration of Actecir. The conference will focus on the need to apply environmentally friendly solutions in the building sector. On the first day, the subject matter will consist of discussions about the fundamentals in rational and ecologically friendly building design. On the second day, the conference will focus on management and control mechanisms affecting energy use. Source: El Instalador 5

6 Switzerland: Swiss to Halve the Use of Heating Oil Switzerland's state energy council, EnDK, agreed March 27 an order to restrict the use of heating oil in new buildings to no more than 4.8 liters per square meter/year. The Council is expected to transpose the ruling into law by tightening existing building codes in each of the country's 26 cantons (states) with new energy-related amendments. A joint effort by the cantons in this area would be "far more effective" than implementing the policy through a new federal Act that is currently under discussion, EnDK spokesman Fadri Ramming said. The underlying aim is to reduce Swiss emissions from heating oil. The revised codes are expected to enter into force over the next year. Source: EU Energy Turkey: Turkish DEMIRDOKUM Opens Plant in Algeria Turkish heating and air conditioning equipment maker DEMIRDOKUM announced on April 13, 2007 that it had opened a plant for the production of water heaters and stoves in Algeria. The plant, Demrad Algerie, has an annual production capacity of 150,000 stoves and 50,000 water heaters. DEMIRDOKUM expects the investment will help it capture a 50% share of the Algerian stove market and 30% of the water heater market, general manager Bulent Lutfu Kiziltan said. In 2006, DEMIRDOKUM reported exports of euro 28 million ($37.9 million). Its main export partners were the European countries which accounted for 65% of the total. The company exports to 152 countries. DEMIRDOKUM, part of local conglomerate KOC Holding, produces panel radiators, wall hung boilers, instantaneous gas water heaters and electrical storage water heaters. Source: Turkish Business Digest 6

7 USA: LSB Industries, Inc. Reports Results for the 2007 First Quarter LSB Industries, Inc. today reported results for the first quarter ended March 31, First Quarter 2007 Compared to First Quarter 2006: -- Net sales increased 32% from $111.9 million to $147.4 million; -- Operating income rose 134% from $5.8 million to $13.5 million; -- Net income rose 263% from $3.0 million to $10.8 million; LSB's Chairman & CEO, Jack E. Golsen, stated that the first quarter continued the growth trend and improving results of the past year. "Our Climate Control and Chemical Businesses both achieved significant gains in revenue and operating income. The Climate Control Business had robust sales growth led by geothermal and water source heat pumps. Our Chemical Business also turned in top and bottom line gains due primarily to the improved market for our agricultural products." Source: Business Wire 7

8 Monthly Special: The Yellow Pages for 30 European Countries Soon Published BRG CONSULT is happy to announce that the final version of "Yellow Pages" for 30 European countries will be published at the end of May (Please see table on the following page for more detailed information on products covered within our studies). Moreover, this year s update has taken into account the growing demand for new technologies. As most of BRGC s clients are already aware, these are being covered in great detail within the framework of the Eco Study but some of the key trends now need to be included in the core programme. As a result, BRGC is proposing to include the following in the regular European programme: - heat pumps: 30 country trends 1995 to 2006 and forecasts to The 2006 market by product type to be included - solar thermal storage tanks: 30 country trends 2000 to 2006 and forecasts to biomass: 30 country trends 2000 to 2006 and forecasts to The 2006 market by product/fuel type to be included - commercial boilers: a dedicated chapter focussing on recognised thresholds, market sizes, output splits and market shares. These will be available in the main body of the report only. BRGC also recognises the role played by water heating within the climate change debate and is proposing adding some more detailed analysis on water heating in This is to include: - electric storage water heating breakdown of tanks by material standardised capacity breakdowns throughout Europe - gas storage water heaters condensing vs. non-condensing standardised capacity breakdowns throughout Europe open vs. fanned flue - indirect cylinders breakdown of tanks by material standardised capacity breakdowns throughout Europe. 8

9 For more detailed information on our heating studies, please Marie Vermeulen or Hana Herynkova 9

10 Geography BRG Consult Newsletter Monthly Special: The German Heating Products Market Following the reunification in 1990, the country is divided into 16 federal states (Bundesländer), some of which are essentially city states such as Berlin and Hamburg. There is still a very real divide between the old east and west, but the situation is improving, not least due to a vast injection of money from west to east. In 1999 the capital city and seat of government moved from Bonn to Berlin. The land area of Germany is 356,737 km2 of which the new Länder account for 30%. Population The total population of Germany declined fractionally in 2005 to around 82.4 million (by 53,000 people compared with 2004). However Germany has still the largest population in Europe. Thanks to net migration into Germany, the population is expected to grow marginally over the next five years to approximately 83 million people. Households There were 30.7 million households in western Germany in 2004, giving an average size of 2.14 persons, and 8.4 million households in eastern Germany in 2004, giving an average of 2 persons per household. Key Economic Trends/Drivers The German economy grew strongly in According to first calculations from the Federal Statistical Office, the price-adjusted gross domestic product (GDP) rose 2.5% on the previous year. Economic growth in 2006 was based both on domestic and foreign demand. In 2006, the disposable income of households rose 1.7%, as was the case in the preceding two years, reaching EUR 1,484 billion. Contrary to the previous years, the final consumption expenditure of households at current prices rose more strongly (+2.0%) than the disposable income. The spending reluctance of households, which had slowed down economic growth since 2001, was not observed in Housing Construction There was a total of 219,800 new dwelling units constructed in 2006 which represents a year-on-year growth of 4.3%. The number of single-family houses has grown by just 2.6% to reach 219,777 houses whereas the construction of two-family houses declined significantly by 9.9% to 25,500 houses. Multifamily houses (with 3+ dwelling units) have been the main drivers with 13.9% growth (69,362 flats). Overall Trends in the Heating Products Market The overall boiler market grew by over 4% in Sales of all types of condensing boilers (both gas and oil) increased compared to The most significant sales growth was recorded in the following product categories: 10

11 - wall-hung gas condensing boilers on floor standing cylinder (compact boilers) growing by over 16%, - solid fuel boilers with an almost 48% increase, and - heat pumps which more than doubled in sales. Despite the significant growth in sales of solid fuel boilers, these products still represent only a small proportion of the total boiler market. The most popular fuel type remained logwood, closely followed however by pellets. The market is dominated by smaller specialised companies, but the traditional boiler manufacturers are also successfully increasing their market share in this segment (see graph). Supply Side Developments VIESSMANN Werke has bought a 52% share in the Austrian company KOEB & SCHAEFER. With the takeover, VIESSMANN has added to its product portfolio of smaller specialised boilers and firewood-fuelled heaters, suitable for domestic use. VIESSMANN acquired another wood-fired heating system producer MAWERA in December German solar energy group CONERGY AG has taken over European-Australian hot water systems manufacturer CAPAUS PTY LTD. Through the takeover, the German company extends its solar thermal products line, as CAP-AUS PTY is a specialist in the field of thermosiphon and heat pump systems. Following the takeover of MAN HEIZTECHNIK by MHG in 2005, the company has officially changed its name to MHG. BOSCH has acquired the US heat pump manufacturer FHP. This move has allowed BOSCH to penetrate the fast growing market for electric geothermal heat pumps in the US. STIEBEL ELTRON is investing over 10 million in a new production facility for heat pumps. The site will be situated in the company s main location in Holzminden and it will be the largest heat pump factory in Central Europe. Through this move, STIEBEL ELTRON aims to manufacture 25,000 heat pumps a year. WOLF HEIZTECHNIK has been acquired by CENTROTEC AG in Outlook 2007 Germany raised its value-added tax from 16 per cent to 19 per cent at the beginning of January with the aim of keeping the budget deficit in check. This has consequently lowered the German consumer confidence as higher value-added tax has discouraged spending. The Nuremburg-based GfK research group said its consumer climate indicator fell to 4.4 points, down from a revised reading of 4.9 points in February and well below 8.7 points in January. This also corresponds with the developments in sales of boilers in Germany, as after a particularly strong winter (November to end January), the spring months recorded a sales decline in the majority of the boiler segments. If you want to receive more information on the German Heating Products Market (incl. boilers, jet 11

12 burners, radiators and water heaters), please Hana Herynkova or call